Edible Garden AG’s Earnings Call: Growth Amid Challenges

Edible Garden AG , Inc. ((EDBL)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Edible Garden AG, Inc. painted a picture of both growth and challenges. While the company showcased impressive revenue growth fueled by the expansion of its shelf-stable product lines and strategic partnerships, it also faced financial hurdles with increased operating expenses, reduced gross profit, and a significant net loss. This mixed outlook reflects a company in transition, balancing growth initiatives with financial realities.

Revenue Growth

Edible Garden AG, Inc. reported a commendable 9% year-over-year increase in revenue for the third quarter, reaching $2.8 million. This growth was primarily driven by the expansion of its shelf-stable product portfolios, including Kick Sports Nutrition, Vitamin Whey, Pulp, and Pickle Party. This revenue boost highlights the company’s successful strategy in diversifying its product offerings.

Shelf-stable Portfolio Expansion

The company’s focus on expanding its nonperishable product lines significantly contributed to its revenue growth. Notably, the hydro basil and wheatgrass segments experienced remarkable growth, with year-over-year increases of 54% and 59%, respectively. This expansion underscores the strong market demand for Edible Garden’s innovative product offerings.

Strategic Partnerships and Retail Footprint

Edible Garden AG, Inc. has expanded its retail reach by launching new product lines at major retailers such as Kroger and The Fresh Market. Additionally, the company has strengthened partnerships with PriceSmart and Amazon, enhancing its global platform’s appeal and momentum. These strategic moves are crucial for increasing the brand’s visibility and market penetration.

Debt Refinancing

The company successfully refinanced its outstanding debt, securing a lower interest rate and more favorable terms. This refinancing is expected to reduce annual interest expenses and provide greater flexibility for future growth initiatives, positioning the company for long-term financial health.

Decline in Gross Profit

Despite revenue growth, Edible Garden AG, Inc. faced a decline in gross profit, which fell from $700,000 in the previous year to $300,000 in Q3 2025. This decrease was attributed to higher labor, freight, and raw material costs, along with inflationary pressures within the nutraceutical supply chain.

Increased Operating Expenses

Operating expenses rose significantly, with selling, general, and administrative expenses climbing to $3.8 million from $2.2 million in the same period last year. These increased costs were driven by asset acquisitions, related depreciation, and legal, audit, and accounting expenses, reflecting the company’s investment in its growth strategy.

Net Loss

The company reported a net loss of $4 million, compared to a net loss of $2.1 million in 2024. This financial challenge highlights the company’s struggle to balance growth with profitability, despite the positive revenue trajectory.

Reduction in Cash Reserves

Edible Garden AG, Inc. experienced a significant reduction in cash reserves, with cash and equivalents decreasing from $3.5 million at the end of 2024 to $800,000 at the end of Q3 2025. This decline underscores the financial pressures the company faces as it navigates its growth strategy.

Forward-looking Guidance

Looking ahead, Edible Garden AG, Inc. remains optimistic about its growth prospects. The company is focused on expanding its consumer packaged goods model, with new USDA organic fresh herb lines launched at major retailers like Kroger. Collaborations with PriceSmart and Amazon are expected to enhance global reach. Despite higher expenses leading to a net loss, the company is optimistic about the projected expansion of the global functional food and beverage market to $610 billion by 2030. With a focus on sustainability and innovation, Edible Garden AG is pursuing new categories like nutraceuticals to align with consumer demand and expects continued momentum into 2026 through strategic retail partnerships and product innovation.

In conclusion, Edible Garden AG, Inc.’s earnings call reflected a company at a crossroads, with robust revenue growth tempered by financial challenges. The expansion of its product lines and strategic partnerships positions the company for future success, but it must navigate increased expenses and declining profits to achieve sustainable growth. Investors will be keenly watching how the company balances these dynamics in the coming quarters.